At least that's the thinking behind it right now. It means 'backup' games are failing to load and consoles failing 'the check' are flagged for Xbox Live bans.
It's also believed that this new anti-piracy system could be updated as time goes on meaning that 'workarounds' to them could be thwarted down the road. Copied game discs are failing with a 'dirty disc' error and likely a flagged console ID.
The only way around this new anti-piracy measure would be to forgo any connection to Xbox Live and be unable to play future Xbox 360 games that require the new dashboard to support this new AP 2.5 software - clever move Microsoft.
Can this help stem the tide of Xbox 360 pirates?